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Discouraged workers dropping out of labor force cause drop in Tenn. jobless rate for July

Staff Report • Aug 20, 2009 at 12:00 AM

Tennessee's unemployment rate was down 10.7 percent in July, down 0.1 percent from June.The July rate a year ago was 6.6 percent. The national unemployment rate for July 2009 was 9.4 percent, down from the June rate of 9.5 percent.Tennessee Commissioner of Labor & Workforce Development James Neeley said, “the unemployment rate reduction does not reflect a meaningful shift in unemployment . The lower rate is mostly a result of discouraged workers dropping out of the workforce.” From June 2009 to July 2009, the number included in the civilian labor force fell by 14,700 (-0.5%); the number of those employed dropped by 11,600 (-0.4%); and the number of those who are unemployed decreased by 3,100 (-0.9%).According to the Nonagricultural Business Survey, 5,000 job gains occurred in durable goods manufacturing; 1,300 in state government educational services; and 900 in wholesale trade. Major employment decreases occurred in local government educational services, down by 2,400; educational and health services declined by 2,200 jobs; and administrative, support and waste services decreased by 1,500.Year-over-year increases occurred in local government, up by *12,200; health care and social assistance increased 10,200; and arts, entertainment and recreation gained 2,000; manufacturing was down 38,500; trade transportation and utilities lost 30,000; and mining and construction decreased by 27,500. *Local government increases were primarily caused by the inclusion of approximately 10,300 Summer Youth Program workers (American Recovery and Reinvestment Act).

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